Utility company improves arrears collection by 50%

Overview

A UK electricity and gas supplier operated arrears collection through a separate specialist team. Following a review, the supplier wanted to bring more of the arrears journey into its core customer-service operation.

The aim was not simply to collect more. The supplier wanted to improve recovery, customer satisfaction and operational efficiency while maintaining strong controls around affordability, vulnerability and regulatory requirements.

Firstsource was already providing customer service, creating an opportunity to integrate arrears conversations into the wider customer journey without replacing the supplier’s existing systems.

Challenges

• A separate arrears journey: Arrears collection sat within a specialist team, separate from the core customer-service journey.
• Collections effectiveness: The supplier wanted to improve recovery performance in one of the more challenging areas of customer operations.
• Customer outcomes: Higher collections performance needed to be achieved without weakening customer satisfaction or the treatment of customers in vulnerable circumstances.
• Control and consistency: Bringing arrears into the core service operation required advisers to handle affordability, vulnerability, repayment and escalation decisions consistently and within regulatory requirements.

How We Made It Happen

• Integrated arrears into the customer journey: Firstsource extended the role of the core customer-service team to include arrears conversations. Automated arrears outreach and account-level prompts helped identify relevant customers, while the supplier’s existing systems remained in place.
• Built affordability and vulnerability into the conversation: Advisers were trained to discuss income and expenditure, understand what customers could realistically repay, recognise signs of vulnerability and update the Priority Services Register (PSR) where appropriate.
• Put judgement at the centre of resolution: Advisers used professional judgement to distinguish between customers who can’t pay and those who won’t pay, then adapted the response. Options included immediate payment, affordable repayment arrangements, relevant support routes and specialist escalation where required.
• Supported decisions with coaching and governance: Ongoing coaching, an extensive knowledge base and real-time specialist support helped advisers manage more complex conversations. Call listening, quality assurance, monthly risk reviews and specialist energy-sector compliance oversight reinforced consistency.

Conclusion

The improvement came from changing how arrears was handled within the customer journey. Advisers were equipped to understand affordability, recognise vulnerability and make the right judgement in the moment, with clear support and governance around those decisions.

By designing the operation around customer circumstances rather than the outstanding balance alone, the supplier strengthened recovery while improving customer outcomes.

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